Raytheon Polar Services Company

Facilities, Engineering, Maintenance, and Construction (FEMC)

Contract No. OPP 0000373
HARD COPY NOT CONTROLLED-CONTROLLED COPY AVAILABLE ONLINE
Engi neer i ng and Cons t r uc t i on
Pr oj ec t Cos t Es t i mat i ng
Document Number EN-DMPS-208
Revision 2
Approved By Ric Morris

Denver Headquarters, and Stations

December 16, 2003

Active Divisions/Departments
FEMC
Raytheon Polar Services Company EN-DMPS-208
Engineering & Construction Cost Estimating Revision 2
DHQ, and Stations
Facilities, Engineering, Maintenance, and Construction (FEMC) i
Contract No. OPP 0000373

Tabl e of Cont ent s
Table of Contents................................................................................................................. i
Purpose................................................................................................................................ 1
Scope/Applicability............................................................................................................. 1
Responsibilities................................................................................................................... 1
Director, FEMC............................................................................................................... 1
Manager, Planning and Controls..................................................................................... 2
Manager, Engineering..................................................................................................... 2
Manager, FEMC.............................................................................................................. 2
Project Engineer.............................................................................................................. 2
Estimator......................................................................................................................... 3
Scheduler......................................................................................................................... 3
Construction Coordinator................................................................................................ 3
General................................................................................................................................ 3
Procedures........................................................................................................................... 4
Preliminary Estimates: .................................................................................................... 4
Final Estimates:............................................................................................................... 4
Fast Track Estimates: ...................................................................................................... 4
Review/Approval: ........................................................................................................... 5
Distribution/Use:............................................................................................................. 5
References........................................................................................................................... 5
Records............................................................................................................................... 5

Raytheon Polar Services Company EN-DMPS-208
Engineering & Construction Cost Estimating Revision 2
DHQ, and Stations
Facilities, Engineering, Maintenance, and Construction (FEMC) Page 1 of 5 pages
Contract No. OPP 0000373

Pur pose
To define the Denver headquarters and McMurdo, Palmer, and South Pole
Stations processes for cost estimating of engineering and construction
projects. The process will utilize the Engineering Project Definitions
(EPD)(EN-D-200), design specifications, and other sources of information as
the basis for the cost estimate. These estimates will be utilized for budgeting
and planning purposes only and will not be utilized for the purposes of
bidding projects as "fixed price" type work.
Scope/Appl i cabi l i t y
This procedure applies to all cost estimates for engineering and construction
projects for maintenance and construction conducted by Raytheon Polar
Services Company (RPSC). It includes the South Pole Station Modernization
(SPSM) project. This procedure applies regardless of the organization that
produces the design.
Responsi bi l i t i es
Di r ect or, FEMC
Assures that this procedure is followed for all engineering and
construction projects.
Approves the project cost estimates prior to release.
Interfaces with the National Science Foundation (NSF) on engineering
and construction project cost estimates.


Raytheon Polar Services Company EN-DMPS-208
Engineering & Construction Cost Estimating Revision 2
DHQ, and Stations
Facilities, Engineering, Maintenance, and Construction (FEMC) Page 2 of 5 pages
Contract No. OPP 0000373

Manager, Pl anni ng and Cont r ol s
Supervises the establishment of standard databases for estimates to
ensure uniform project estimating.
Selects the type of estimate to be produced based on the level of
information defined in the project scope. The estimate types are
preliminary (rough order of magnitude), final (detailed), or fast track.
Supervises the accomplishment of the cost estimate.
Supervises the establishment of actual cost feedback systems to provide
accurate cost data to the estimating databases.
Monitors the cost feedback system to ensure data accuracy and system
integrity.
Manager, Engi neer i ng
Supervises the collection of project information prior to the cost estimate
preparation, including the preparation of the Engineering Project
Definition, design drawings, and specifications.
Reviews the cost estimate for accuracy and reasonableness.
Manager, FEMC
Reviews standard and project specific work packages for utility and
accuracy.
Reviews the cost estimate for accuracy and reasonableness.
Pr oj ect Engi neer
Provides engineering requirements to the Estimator.
Assists the Construction Coordinator and the Estimator with the
identification and creation of project specific work packages.
Assists the Estimator with the interpretation of the plans and
specifications.
Reviews the estimate to ensure completeness and conformity with the
drawings and specifications.
Raytheon Polar Services Company EN-DMPS-208
Engineering & Construction Cost Estimating Revision 2
DHQ, and Stations
Facilities, Engineering, Maintenance, and Construction (FEMC) Page 3 of 5 pages
Contract No. OPP 0000373

Est i mat or
Establishes preliminary (order of magnitude) and final (detailed)
databases.
Produces the type of estimate selected by the Manager, Planning and
Controls.
Performs material takeoffs.
Establishes standard and project specific work packages.
Accomplishes the cost estimate using the inputs of the Construction
Coordinator and the Project Engineer.
Updates the databases and work packages using actual cost and
performance data.
Performs statistical risk analyses on projects as directed by the Director,
FEMC.
Schedul er
Monitors the construction project and records the actual resources
utilized for each work package installed.
Records the conditions under which the work is performed as well as all
circumstances impacting the performance of the work.
Transmits approved work package corrections to the estimator.
Const r uct i on Coor di nat or
Assists the estimator with the creation of project specific work packages.
Provides the Scheduler and Estimator with an accurate record of labor
and equipment actually used.
Gener al
This procedure will be used to produce three types of cost estimates:
preliminary; or rough order of magnitude, final, or detailed, and fast track
estimates.
Raytheon Polar Services Company EN-DMPS-208
Engineering & Construction Cost Estimating Revision 2
DHQ, and Stations
Facilities, Engineering, Maintenance, and Construction (FEMC) Page 4 of 5 pages
Contract No. OPP 0000373

Pr ocedur es
Pr el i mi nar y Est i mat es:
The preliminary cost estimate will be conducted upon request from the NSF.
This estimate will be based on the scope of the approved Engineering Project
Definitions (EPD), or list of requirements supplied by the NSF if no EPD
exists, or a What If scenario is requested. This estimate will contain
summary, rather than detailed, work packages and it will calculate the work
packages under the scenario; best guess with the assumptions concerning
conditions and costs clearly defined for each work package. Preliminary
estimates will be presented with a +/-% based upon the definition of scope and
historical information on similar work. Classification and % will be based on
the AACE (Association for the Advancement of Cost Engineering)
International Recommended Practice No. 17R-97, Cost Estimate
Classification System, 2003 (See EN-DMPS-208a).
Fi nal Est i mat es:
Final estimates will be accomplished after design and specifications have
received final approval and after all work requiring shop drawings or
subcontracts has been bid and accepted. This estimate will contain detailed,
rather than summary, work packages and will be used as a target for
monitoring and training. This estimate will be based on the approved drawing
and submittal package. The format of the final estimate will be an overall
project cost broken between fiscal years with an associated Scope of Work
(SOW). The Director, FEMC, may require that the estimate be subjected to a
statistical risk analysis to establish best and worst case cost parameters.
Fast Tr ack Est i mat es:
Fast Track estimates will be accomplished when procurement or construction
must begin prior to final approval of design and specifications or prior to
accepted bids for subcontracts or work requiring shop drawings. This
estimate will contain detailed work packages. The format will be a single
value. Fast Track projects in excess of $500,000 may be subjected to a
statistical risk analysis review and approved by NSF prior to any expenditure
of construction funding. Fast Track estimates will be revised and recalculated
Raytheon Polar Services Company EN-DMPS-208
Engineering & Construction Cost Estimating Revision 2
DHQ, and Stations
Facilities, Engineering, Maintenance, and Construction (FEMC) Page 5 of 5 pages
Contract No. OPP 0000373

with updated design and cost data on a schedule determined by the Director,
FEMC.
Revi ew/ Appr oval :
All cost estimates shall be reviewed by the Project Engineer; Construction
Coordinator; Manager, Planning and Controls; and Director, FEMC. The
Director, FEMC, must approve all estimates requiring submission to the NSF.
FEMC personnel will not submit cost estimates directly to the NSF. Estimates
that have been approved at the FEMC level will be submitted to the RPSC
Financial group for review, standardized formatting and the addition of
approved contract markups. The Director of Finance or delegated authority
will submit all cost estimates to the NSF representative.
Di st r i but i on/ Use:
Preliminary cost data will be listed in the Estimate Cost Data section of the
EPD. These cost estimates are intended as internal planning estimates for the
preparation of budgets and other planning documents. The estimates will not
normally be distributed outside of RPSC. The RPSC Program Manager, or
Director, FEMC, may provide copies of the estimate to the NSF.
Ref er ences
Cost Estimate Classification System, AACE International Recommended
Practice No. 17R-97 (EN-DMPS-208a)(PDF Format)
Engineering Project Definitions (EPD) (EN-D-200)
Recor ds
See Engineering Project Definitions under the FEMC-DHQ & STATIONS
tab of the FEMC Records Management Table (EN-D-226a).